Workers' Remittances and Dutch Disease: A Panel Data Analysis for Selected Countries


AKÇA E. E. , BAL H.

ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES, cilt.12, sa.2, ss.49-64, 2017 (ESCI İndekslerine Giren Dergi) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 12 Konu: 2
  • Basım Tarihi: 2017
  • Dergi Adı: ESKISEHIR OSMANGAZI UNIVERSITESI IIBF DERGISI-ESKISEHIR OSMANGAZI UNIVERSITY JOURNAL OF ECONOMICS AND ADMINISTRATIVE SCIENCES
  • Sayfa Sayıları: ss.49-64

Özet

Workers' remittances, that have influence on a range of parameters like production, investment and employment structure of host country, exert effects on the foreign trade structure as well through its impact on real exchange rate. Besides the capital inflows like foreign direct investment, portfolio investment and foreign aid, workers remittance can also lead to Dutch Disease, a phenomena known in literature resulted from sudden and massive increase in foreign capital inflow because of natural resource discovery. The study aims to determine whether the workers' remittances led to a real appreciation in the host country's currency employing panel data for the period of 1990-2014 for 9 countries selected from those receiving the highest workers' remittance. Findings from the analysis of the two-way random effects estimation suggest that, as a Dutch Disease Symptom, workers' remittances lead to a real appreciation of the home countries' currencies.